ACLEDA Bank signed a co-financing scheme of $135 million for agricultural loans in Cambodia with the Japan International Cooperation Agency (JICA) and Sumitomo Mitsui Banking Corporation (SMBC) Bank, an official told Khmer Times.
Buth Bunseyha, EVP & Group Chief Legal Officer, said that the local commercial bank Acleda has sealed a deal with JICA and the Toyko-based Japanese bank and the loan will be distributed in Cambodia’s agriculture sector.
“These loans will be provided to farmers for the development of the agricultural sector in Cambodia. Previously, farmers focused on small-scale family rice farming, but now the agricultural sector has expanded on a large scale. So, farmers need to expand their work to commercial-scale through market mechanisms,” said Bunseyha.
Long-term co-financing projects obtained from JICA and SMBC Bank are very important for ACLEDA Bank to provide loans to small and medium enterprises that need credit with reasonable interest rates.
JICA and SMBC have provided a co-financing package to ACLEDA Bank for agricultural loans in Cambodia. This co-financing will help boost agricultural production and socio-economic development by boosting more active use of financial services in rural areas.
In Channy, CEO of Acleda Bank, said the bank is one of the largest commercial banks with the largest network in Cambodia. The network of operations makes it easy for Cambodians from all backgrounds in the community, especially those living in rural areas, to access the bank’s full range of financial services, including credit, aimed at strengthening and expanding rural agriculture.
This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources.
